Philippines: the rapid development of the crypto industry in the light of the advent of the regulatory framework

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Philippines: the rapid development of the crypto industry in the light of the advent of the regulatory framework

The Commission on securities and exchange Commission of the Philippines is soon to announce new legislation that will have a huge impact on the cryptocurrency industry of the country. According to the newspaper Manila Times, the legislation will allow cryptocurrency exchanges to function as marketplaces.

The bill will certainly play a significant role in making the Philippines a major player in the global cryptocurrency market.

The head of the Commission, Apiro Louis Amatong long advocated the need to consider the exchange as a trading platform, from the point of view of the legislation. In addition, it is felt that for Philippine Ministers ICO topical question, to settle which urge the legislators.

Amid growing industry Finance and dissemination of technology blockchain the regulators believe it is extremely important to establish adequate infrastructure that will enable the sector to develop successfully.

The country’s Central Bank Bangko Sentra ng Pilipinas (BSP) is actively implementing the required legislation to give the market the opportunity to work freely. The main Bank and the main financial Supervisory authority intend to jointly regulate exchanges of virtual currencies, as explained by Mr. Amatong:

“We have already discussed the situation with representatives of the Central Bank, because they have vested interests no less than ours. We are talking about the joint oversight of the cryptocurrency exchanges”.

Earlier this year, the Central Bank said it was looking at bids from venture capital firms to conduct operations in the Philippines. Now the appropriate license from the Bank have only two such companies – Rebittance and Betur.

Melchor Labasan, Deputy Director of the Bank, calls himself a “friend” of the cryptocurrency industry and says:

“If you need fast, running in near real-time and convenient tool, it makes sense to refer to a virtual currency such as bitcoin”.

In August 2018, the Commission on securities and exchange Commission has proposed a set of rules of the ICO, which should be finalized this month. According to the rules, any structure wishing to conduct the ICO must submit the application for conducting the initial evaluation, describing specific project ICO, a decision is made.

Startups wishing to hold the ICO must be registered as corporations, as issuers of tokens outside of the Philippines will be required to enroll in the country branches.

The anticipated rules will apply to advertising of projects, reporting requirements and profit investment funds in the case that the ICO remains incomplete.

Small and middling companies are also seriously benefit from the new legislation. As noted Amatong, “..the technology will allow smaller companies a safe way to raise funds.”

Mr. Amatong summarized his story about the consequences of the legislation for the Philippine market with the following statement:

“There will be an opportunity to seek investors, without going through a lengthy and tedious security check”.

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